Police, fire unions sue city over pension
The Baltimore police and firefighters' unions have filed a federal lawsuit against the city, alleging that the city has under-funded their pension plan for the last ten years. Union leaders say that the city ignored financial advice, and that this is not a crisis like the city is portraying it, but something of their own making. City officials say that they cannot pay more than $101 million to pensions, but if no changes are made to the pension system they would owe $166 million. Many police and firefighters have threatened to retire or resign if the city cuts their benefits. A spokesperson for the city says that the new bill to change the pensions is a good one, and will be good in the long run. Union officials say that they would be open to settling the dispute with the city, but that their proposals do not address the issue of long-term funding of the pension plan. The city needs to have any changes passed by July 1.
See "Police, fire unions sue city over pension", Julie Scharper, Baltimore Sun, June 3, 2010